CPA Salary Insights: What Each Type of CPA Makes

When you’re exploring a career in accounting, it’s important to have a clear idea of what you can expect to earn. A good place to start is by looking at an accounting salary guide, which can give you insights into the average earnings for professionals in the field. Whether you’re eyeing a career as a CPA or considering advancing in the industry, understanding the pay scale and factors that influence salaries is key. This guide will break down everything you need to know, from median CPA pay scales to factors that influence salaries, and help you see which industries and roles offer the best opportunities.

Median CPA Pay Scale

CPAs are among the most highly respected professionals in accounting, and their salaries reflect that. According to recent data, the median salary for CPAs in the United States is around $74,000 annually​. However, this number can fluctuate depending on experience, location, and other factors. It’s important to note that CPAs at the entry level might earn closer to $50,000 per year, but as they gain experience and specialize, they can see their salary rise well into the six-figure range​. On the higher end, CPAs in senior management or executive positions can earn upwards of $150,000 annually or more​.

Factors that Affect a CPA’s Salary

The salary of a CPA isn’t one-size-fits-all. There are several key factors that can influence how much a CPA makes in their career. Let’s take a look at these factors to help you understand the salary landscape for CPAs.

Experience

Experience plays a major role in determining a CPA’s salary. Entry-level CPAs, who are just starting their careers, generally earn between $50,000 and $65,000 annually​. However, as they gain experience and take on more responsibilities, they can earn significantly more. Mid-career CPAs can expect to earn between $70,000 and $115,000​, while senior-level CPAs, especially those with specialized skills or in managerial positions, may earn over $120,000 per year​

Location

Where a CPA works can also impact their salary. In areas with a high cost of living, such as New York City or San Francisco, CPAs typically earn more to help offset the higher living expenses. On the other hand, CPAs working in smaller cities or rural areas may see slightly lower salaries, but the cost of living in these areas is usually lower as well​. Geographic location is something to consider when evaluating CPA salaries because it directly affects how far your salary will go.

Industry

The industry in which a CPA works can have a significant effect on their earnings. CPAs in public accounting, particularly those in larger firms, often earn higher salaries compared to those in smaller firms. Additionally, industries like healthcare, technology, and finance tend to offer higher salaries due to the complexity and demand for financial expertise in these sectors​. CPAs working in government or non-profit sectors may earn less, but they often enjoy more stability and work-life balance.

Industries that Hire CPAs

There are many industries that rely on the expertise of CPAs to manage their financials. Here are some of the top industries that commonly hire CPAs:

• Public Accounting
• Corporate Finance
• Government and Non-Profit Organizations
• Financial Services (including Banking and Investments)
• Healthcare
• Insurance
• Technology
• Real Estate
• Energy and Utilities
• Education

Each of these industries offers unique opportunities for CPAs to specialize and grow their careers, with varying salary scales depending on the field.

Types of CPAs and Their Average Salaries

Different types of CPAs take on various roles in the accounting profession, each with its own average salary. Let’s dive into some of the most common CPA types and the salary expectations for each.

External Auditor

External auditors are responsible for examining the financial records of companies to ensure they are accurate and compliant with regulations. They typically work for accounting firms or as part of a larger organization’s internal audit team. On average, external auditors can expect to earn between $60,000 and $85,000 annually​, though this can rise significantly with experience and promotions.

Tax Accountant

Tax accountants focus on helping individuals and businesses with tax preparation, planning, and strategy. They also ensure that clients comply with tax laws. The average salary for tax accountants ranges from $55,000 to $95,000​. Tax accountants working at larger firms or with specialized knowledge (such as in corporate tax or international taxation) can command higher salaries, with some reaching over $100,000 annually.

Internal Auditor

Internal auditors assess an organization’s financial and operational processes to ensure compliance and efficiency. These professionals often work in-house for corporations, non-profits, or government agencies. Internal auditors can expect to earn between $60,000 and $90,000 per year​, with senior internal auditors or those with specialized expertise earning more.

Financial Advisor

Financial advisors who hold a CPA designation often focus on advising clients on investments, retirement planning, and overall financial strategy. These CPAs can earn a wide range depending on their clientele and expertise. On average, financial advisors with a CPA background make between $75,000 and $120,000 annually​. However, earnings can increase dramatically if the advisor works with high-net-worth individuals or corporate clients.

Entry-Level CPAs

Entry-level CPAs are just starting their careers and typically work under the supervision of senior accountants or managers. The salary for entry-level CPAs ranges from $50,000 to $65,000​, but as they gain experience, their earnings potential increases. Many entry-level CPAs work in roles like tax preparation, auditing, and financial reporting before advancing into more specialized positions.

Is Being a CPA Worth It?

If you’re wondering whether pursuing a career as a CPA is worth it, the answer largely depends on your career goals and personal preferences. The accounting profession offers competitive salaries, especially as you gain experience and specialize in areas like tax or forensic accounting. Additionally, the stability and high demand for CPAs mean that job security is generally strong. CPAs also benefit from numerous career advancement opportunities, with the potential for high earnings in senior positions or niche specialties​.

However, it’s important to note that becoming a CPA requires a significant investment in education, time, and effort to pass the CPA exam. The job itself can be demanding, particularly during tax season or when managing large accounts. So, while the financial rewards are substantial, the workload can be intense at times.

Why a Career as a CPA Could Be Your Path to Success

Pursuing a career as a CPA offers numerous benefits, from competitive salaries to job stability and growth opportunities. While your earnings as a CPA will vary based on factors like experience, location, and industry, it’s clear that the field is financially rewarding for those who put in the work. If you’re ready to commit to the educational requirements and enjoy working with numbers, a CPA career could be a smart investment in your future. Whether you’re just starting out or looking to specialize, there’s a clear path to success for CPAs in today’s economy.